AB 284 and How It's Effecting Our Market

by qnicholasc 12. April 2012 13:55

 

 

As we have discussed in previous posts Las Vegas inventory is dwindling. As of today we have a little less than a 6 week supply of homes which is determined by the average number of homes we sell each month. Demand to buy is at an all time high. We are listing properties and within hours receiving multiple offers. I have heard properties receiving 25 offers! What has caused this to happen? October 1, 2011 Assembly Bill 284 was put into effect. Since then we have seen a steady decline in Foreclosures being filed. What is AB284? Basically it has made the guidelines stricter for banks to foreclose on homeowners and requires that proper documents are available showing that the bank has the right to foreclose. Many believe that this will allow many homeowners to be able to stay in their home for up to 2 years without making a payment! Sounds good right? Not really. There are a couple major things homeowners need to consider.

 

1. The Debt Forgiveness Act expires at the end of 2012. How does this affect you? Well if you owe $200,000 and your home eventually forecloses and is sold say for $100,000, the IRS looks at the $100,000 deficiency as earned income that you will be taxed on! The IRS is on the top of my list of people not to piss off or owe money too.

 

2. Banks have already started Judicial Foreclosures. Basically after milking the system and not paying your mortgage for 2 years the bank will take you to court to foreclose and seek full deficiency! Now you could potentially be on the hook for A LOT of money. You will most definitely need an attorney and I doubt they will come cheap in this case.

 

3. Closure. Many people are in this mortgage struggle voluntarily and involuntarily. Sure it's great to not have to make your mortgage payment and have some extra cash or maybe you need it to live on. At the end of the day do you want to go to sleep worrying about the above mentioned risks or be able to take advantage of starting over now with no worries? The banks are working with us to help homeowners either modify their mortgages or short sale their homes. The benefits of short sale are that we can negotiate full deficiency waiver and while the Debt forgiveness Act is in place you would not owe the IRS. I know I would sleep better not worrying about my mortgage company suing me or owing taxes on money I do not have to the IRS.

 

Our goal is to educate homeowners on all their options and help inform them of consequences they may be faced with if they choose to not act. We will show you all of your alternatives and we never charge.  Our services are completely free.  If you are struggling or would like help navigating through this difficult situation call us. Do not wait until it's too late call today.

 

Melissa & Nick Chupa, Broker/Owners of Sovereign Realty

 

702-800-5744

 

 

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